The Old Hippie Manifesto

Dave Schultz

December 29, 2012

As I write this, we’re about to fall off the “Fiscal Cliff”. In a nutshell, the Fiscal Cliff of December 31st is when the “Bush Tax Cuts” end, many subsidies end, the country hits the “Debt Ceiling” and runs out of money, and across the board cuts (known as a Sequester) to all Federal agencies – especially the military – go into effect.

Let’s take them one by one.

Tax Rates.

Income Tax Rates for everyone will go up. Those who pay no taxes will pay about $300, while those earning $1Million a year will pay an additional $170,000. I expect mine to go up about $30,000 a year. While many have fallen for the Class Warfare Obama has pushed on us, and won’t shed a tear for those earning a higher income, there is a trickle-down effect that will affect everyone. Many of these so called rich are small business people, and they’ll cut back even more in than they’ve already been preparing for with Obamacare. I personally have put off all plans to open any new business until there is sanity restored to government (Going Galt), and I refuse to hire anyone full time. I won’t be buying a new car or truck in the near future – and I’m driving an 8-year-old truck for the first time in many years. So if you have anything to do with building cars, selling cars, making parts, or even wanting to collect sales tax on a car purchase — Sorry. You will also find times tougher if you work in a restaurant, sell electronics, work in the travel industry, or do anything else financed with discretionary income. There will be less to spend, so more people will be laid off, causing even less to be spent, causing even more to be laid off.

Payroll Taxes paid by employer and employee. These rates go up for both starting January 1. Additionally there is a new Obamacare tax. Employers have to cut back somewhere – and that will be people.

Capital Gains Tax. This is a tax on something that you paid with your already taxed dollars – and then sold for more than you bought it for. It also includes the weak ass interest you might receive on your savings – or the sale of your house (which also gets a new 3% Obamacare tax). It currently is 15% — and will go to 40%.

Death Tax. Goes to 55% from 35%, and the exemption drops from $5Million that you can shield to $1Million (a common house in many cities) that you can shield. Say you spent your early years working and studying harder than all of your friends so that you could give your future family a better life than you had. Your busting ass and taking big risks pay off and you hit that level of financial success you planned for. Then you die. Instead of the money, investments, and property (that the government left you after seizing its share in Income tax) going to your heirs – the government first skims 55% off the top as a tribute. Don Fanucci calls this Wetting the Beak.

AMT – Alternative Minimum Tax. Obama will tell you that I’m rich because I EARN over $250,000 a year, and that I have tax loop holes available to me. I have no loop holes and pay a huge amount in taxes. I am means tested away from everything the average citizen gets. I also have the burden of AMT – and the $7500 my CPA charges to prepare my associated tax returns from fully documented computer records of my accounting system (which also cost me a pricey sum during the year). You see my taxes have to be prepared two different ways – and I have to pay the higher of the two. Some freaking loop hole! Coming up are 30 Million more of you get to have the same pleasure of this AMT.

Subsidies. Government Subsidies go to corn farmers for ethanol in gas, dairy farmers, solar farms, wind farms, colleges, tv stations, car manufacturers, and all kinds of other stupid stuff. It is a Socialist tool to spread the wealth from the 50% who pay taxes, to the Moochers who pay no taxes and have their hands out for a socialist government spreading the wealth. A true Capitalist economy wouldn’t have it – but just the same expect your milk to go to $8 a gallon, gas to jump, and your electric bill to spike from the lack of these subsidies getting renewed.

Debt Ceiling. Whenever the country spends more than it takes in – it goes into debt. Congress has to approve the debt. Five years ago this debt was $5Trillion dollars – which is a Hell of a lot of money that will take forever to pay off, mainly because of the size of the interest payments to our creditor – China! When with Obama giving away free stuff like cell phones, Internet, Food Stamps, unemployment forever, and greasing political cronies like Solindra, GM, Fiat,… our debt ceiling was authorized to be $16.4 Trillion. It might sound like just a number to you – but you can never repay that kind of money. We will hit that debt ceiling this Monday – and then we can borrow no more. Secretary of the Treasury (and tax cheat as most Obama appointees are) Timmy Geithner will play some illegal magic with the number while Congress turns its head. Naturally they won’t cut off the handouts to moochers who put these Socialists in office – but I guarantee my VA disability will not be paid (barely worth mentioning anyway – but for others more seriously injured and having no other income are screwed), our Military personnel, parks, airports and anything else having to do with business or the military will see the lion share of the cuts.

Sequester. Because not a single Fiscal Budget has been approved by Congress since Obama took office – the last agreement was for a “Sequester” to go into effect January 1st – if there still was not a budget approved. The Sequester has automatic cuts to all Federal Agencies – but really loads it up on the Military, who Liberals have always had distain for. Well the Democrats kept insisting on taxing and spending more, and Republicans kept insisting on cutting back on government – so nothing was agreed to and we get the Sequester.

OK – so those are the facts on what the Fiscal Cliff is. I have explained it because I’ve yet to find a family member or friend who actually knew any more than what Obama’s media has wanted them to know – which is that “the evil Republicans are making your taxes go up”.

Now I’m going to give my opinion/editorial on what should be done if we want to save this country from becoming the Fiscal Failure like the PIGS (Portugal, Italy, Greece, and Spain). If you don’t know what’s happening there – you need to do a Google search and learn how their borrowing money to give to Moochers bankrupted them to the point where no one works, and there are no government services.

The reason that I feel qualified to discuss this is because I’ve been a political animal for over 30 years – and the news is on in my home 12-15 hours a day. I get up in the morning at 5AM and have the financial news on until 3PM while I make my stock trades (giving me an insight on Finance) and the National News on from 3PM to 7PM. I’m usually working on the computer – but I keep an ear open on important topics. I also have an insatiable appetite for knowledge. If I have any question in my mind about anything no matter how trivial – I look it up. I’m usually at the keyboard, but even sitting and watching a movie or a game will have me with my iPad to look up trivia like when the actress died, of what disease, or what years the coach played the game.

A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship. The average age of the world’s greatest civilizations from the beginning of history has been about 200 years.

During those 200 years, these nations always progressed through the following sequence:

You are either a Producer (contributing more than you receive), or a Moocher (receiving more than you contribute). Don’t like being called a Moocher – too bad cupcake. You are part of the problem with the United States going bankrupt. We are a society that continues to say the 5% paying 90% of the taxes aren’t doing their fair share.

In the past, the Christian Work ethic of Americans didn’t require big government. There were no handouts and people had to work to care for their family. If there was no work – you moved to where there was work. People moved from the Dust Bowl to California. People moved from the cotton fields of Mississippi to industry in places like Detroit. I moved from Buffalo, New York to Texas when factories closed in the 70s. You use to take responsibility and you showed some self-pride. Today you will make more money not working (in addition to under the table) than to work – and those who still aren’t working after 2 years (Obama wants to raise to three years!) of Unemployment handouts now go on Social Security disability – because they’re too distressed from not working to work, thus disabled.

In the past, family took care of family. All of my Great-Grandmothers were cared for by their children or grandchildren. Now the government pays for the elderly and disabled in families and families grow apart.

In the past, we had personal pride. I grew up in a 1-bedroom apartment with four brothers and three sisters (later upgrading to a two bedroom duplex) – and often had a grandfather or even another family living with us. I started selling doughnuts door to door at age 7, and had a paper route at age 10. The four eldest siblings always had a job from the time they turned 12 – always. My father worked minimum wage jobs (and it sure the Hell wasn’t what it is now days) pumping gas, delivering flowers, working at a hardware store, of being a security guard. Out of Pride, my family never applied for or received a penny of public assistance. Now the Moochers get a credit card and their unearned handouts are called Benefits – and paid into benefits like Social Security and Medicare (which I’ll never see a nickel of after paying the maximum all of my life) are considered some great government benefit. Well it is only a government benefit to the people who didn’t properly contribute to the system – or are fraudulently receiving benefits.

The problem is that the Socialists/Progressives/Liberals/Communists have won. They may have different motives of why they ran for office – from the Big C Communist carrying out Stalin’s dream and infiltration of the 1930s, to the Little C communist who is more of a Che/Castro Communist wanting to kill America by overburdening it with totally dependent people (Search Saul Alinsky and Cloward & Piven Strategy) – or just greedy people willing to sell out America for a high paying (and benefits) career of never having to actually have a job — by giving free stuff to moochers in exchange for their vote. Whether they do it for fame, principle, or free lunch – they have quickly brought us to the point of no return. LBJ’s Great Society was sold as a making all people equal – but 50 years later it is on its 4th generation of totally dependent moochers who will never be productive – cranking out kids who will also never be productive. It most hurt the people it was designed to help, because it was always a flawed plan. It has also created more hate between the races than I’ve experienced in my 58 years. Obama has wedged a great divide between the Producers and Moochers to record levels. It is how he got re-elected after being History’s Worst President. The Great Society has been a Great Failure. The reason we’re past the point of no return and the Liberals have won is because they are now the majority and will always vote for free stuff over real reform. Their greed and laziness has also caused them to be an ignorant group of people – who won’t make the simple effort to expand their knowledge, or even follow current events. We see these idiots on Jay Leno’s Jay Walking, or Howard Stern’s Man on the Street. These are sheeple that will accept anything politicians and the Liberal Media will tell them. Over the last 20 years Liberals have been going after our children with a vengeance. Most teachers are union activists, very Liberal, Pro Gay, and downright ignorant. Go have a conversation with your kid’s teachers and test what I’m telling you. Are they like your teachers in the 50s or 60s? Those kids making it to college (and most now go for stupid curriculums like French Literature or Sports Administration) have it even worse with the Professional Little C communists controlling all teaching positions. They are molding our kids in their vision.

If you’ve watched the News or listened to Obama and Reid in the last few days – you are under the impression that Boehner and the Republicans are going to make everybody’s taxes go up because they’re not going to vote for a Bill that raises taxes on anyone. While it is true that Conservatives feel that the problem isn’t enough taxes but too much spending – the lie is that the Democrats in the same Bill have agreed to cut nothing, they want to rescind the Sequester, they want to add another year of unemployment payments, and they want to increase the debt ceiling to even higher levels. Nowhere in the news does this get reported.

When I ran a larger business, I would tell my managers to never come to me with a problem without also having a suggested solution. So here’s my solution. Everyone gives up something to make things right. It is politically incorrect & racist – because you can’t take anything away from Moochers. It is said that Romney lost the election for telling the truth about the 47% that will vote for free stuff. Since then, Politicians will never again (at least on purpose) tell the truth, as it will be terminal to their career. I don’t hold a political office, nor will I ever run for one – so I’ll accept the racist label I’ll and just tell it like it is.

Taxes. In addition to an unfair system where 5% pays 90%, and 50% pay nothing – I’d go with a Federal Sales Tax REPLACING the Personal and Business Income Tax. Fire 99% of the IRS Thugs, as they won’t be needed. We do need prison guards though. Have accountants focus on business financials and other accounting rather than making a mountain out of a molehill on our taxes. In addition to the huge savings of 99% of the IRS expenses with a simple tax – everyone has skin in the game. Pimps, crack whores, Illegals, Visitors – any person or business buying something will be contributing in the revenue. While the rich pay more because they buy more (bigger homes, bigger cars, bigger boats, bigger cocktail bills!), everyone has a little skin in the game – reducing their Moocher footprint. You want to pay less tax – buy less. This sales tax is collected by the state – and remitted to the Feds. Since the States do what they’re supposed to do (take care of their people) and the Feds do what they’re supposed to do (take care of the states) – far less money needs to go to the Fed, and the non-military portion can be reduced to 5% of what it currently is as a nanny.

Eliminate Capital Gains tax and Estate tax. This is money left after being taxed at least once already – and it is not right to tax it again and again. The wealthy will take this money and set up yet more charitable foundations and give yet more to charity. This will eliminate both the need for a corrupt Government to be the nanny of the truly needy – and be far less corrupt with election contributions and cronyism. You’ll never convince Liberals of this charity aspect – because it is their greedy nature to hate Producers and it has never crossed their mind to be charitable. Liberals believe it is up to the government – not the citizens — to take care of their neighbor.

OK – after making the Revenue so simple that you can’t cheat and you need a million less government thugs to collect and audit – you need to properly handle expenses.

This Republic was originally created for the individual state to handle the vast majority of governing its people – and the Federal government was to handle those United States defense and interstate commerce. Don’t like the way your state is governing – move to state you liked! However, Progressives (name communists like to be referred to) in the 1920s-1930s saw the spread of the dream for One World Marxism. On the way – the Federal government grew like a cancer to rob our freedoms so they could expand in just the way our Founding Fathers warn us of. 80% of what the Federal Government has their finger in now would appall those Founding Fathers.

It was never the plan of the founding fathers to have tax dollars (we actually didn’t even have a Federal Income tax until 1900) going to subsidize colleges, solar energy, wind farms, milk, corn, Internet, cell phones, cash for clunkers, oil, matching election contributions. Daycare, welfare, unemployment, Obamacare, FEMA, flood insurance, bullets for the IRS, liar loan mortgages, — you get the idea!

Yesterday, Obama gave all Federal politicians and employees a raise by Executive Order. In the beginning, these politicians had their expenses paid by the state that had sent them. They didn’t receive 6-digit salaries, big expense accounts, private limos; or special retirement packages and premium free health care for life after just one term. They didn’t go on junkets to Tahiti either. Who gave them these benefits – you, me? No, these corrupt parasites give these gifts to themselves – and that doesn’t come close to the graft and corruption they receive in shady motel rooms or bogus salaries to their family members. Eliminate all of that, and rescind all these gifts they illegally gave themselves. Have the state pay for their representatives, staff, and expenses. Then the state will get the representation they deserve and the politician has to answer to someone about the money his office spends. Have term Limitations of one 6 year term to each branch – Executive, Senate, and Congress. This stops the campaigning while on our dime – and holds their feet to the fire to vote their conscience – as that was supposed to be the reason we put them there.

Get the US out of the UN, and the UN out of the US. There is no good to that organization – and no reason for us to finance their hatred of us. The UN is the most corrupt organization in the Universe. We waste hundreds of billions of dollars a year on this corrupt farce.

States need to handle the education and public assistance needs of their citizens through their portion of sales tax. (Again, no income tax, cigarette tax, FET, gasoline, or other hidden taxes – just one sales tax with the major portion going to the states and a small portion to the Federal Government – plus property taxes for those owning land.) The more localized you make it – the better the money is spent. If your state politicians want to play the Moocher game for votes that the Federal government is playing – a Producer will find a state better suited for his politics or personal responsibility. If smaller adjoining states need to merge to make this go – then it is their prerogative to negotiate the terms and put it to a vote. I have a lot of thoughts on how states should take care of the needy – without creating more of them, but that’s for another day.

I appreciate the military and want a strong defense. I enlisted when I was 16 and started serving shorting after turning 17. I am a Vietnam Era Service Connected Disabled Veteran. For 40 years, my injuries (although not combat related) cause me great pain every waking moment of the day – and greatly limits my mobility. I love the country I enlisted to serve. That said – let’s get out of the Middle East. When two groups of people who hate you start killing each other – you step away – and let them get to it. We have always chosen the wrong side with them – because there is no right side. Iraq, Iran, Egypt, Libya, Syria, Afghanistan, and Pakistan – they are all inhabited by violent animals driven by a violent culture of hate. Just stand back let them thin their own herd. If they have training camps or hideouts for attacking us – then send in an AC130, a drone, or a cruise and take them out. Tens of Billions are wasted each year with crony contracts to “Military Consultants”. End it. You’re either Military, Civil Servant (and that should be limited), or a contractor. Screw this unaccountable contract consultant stuff. The military also needs to show more accountability to the states on money they spend. More of the military should be localized to the state (as we did in the days of the Civil War) – but overseen by the Department of the Defense. States have the right to have any size State militia they are willing to fund. The Militia and the Right to Bear Arms were put into the Constitution because the Founding Father’s wanted these rights to belong with the states – and that Federal Governments are easily corrupted with shifting power from the states to themselves.

States handle their own highway systems with their own taxing based on the state’s needs. Interstate systems get turned over to the states. They maintain their sections of it. If they can’t – then cars and trucks will avoid that state. Money will no longer be doled out based on political affiliation. Illinois sure has had a lot of roadwork in the last five years – I’m just sayin! If the states wish to contract the repair and maintenance of these sections of Interstates to private business as toll roads, that’s their option. Pay for use is fair.

The Federal government needs to turn over Federal Park Lands to the state with the land. The state owns the property, its resources – and the expense of maintaining it.

While most of the governing (schools, health, welfare, roads, …) comes from the state – there are some (about 5% of what they’ve taken from the states over the years) use for a fair Federal government. FBI does need to handle Interstate crime. NSA or the CIA need to handle International intelligence as it applies to the protection against a foreign power. An Interstate commerce system is needed to ensure smooth travel between states. An EPA far different than the one we have ensure there is a balance between industry and the environment. A FTC for the protection of interstate crime against a consumer. A FCC to keep an organized and safe radio/TV/internet system. A small Federal prison system. The FAA for air traffic. Immigration – and while on that subject, Profile Immigration and stop the entry into the country by violent cultures for education, or any other reason. Ask France, England, Spain, and Demark how allowing Muslim men in the 16-50 age range is working out for them.

We don’t FEMA – that was never the Federal government’s job. States handle their own citizens’ rescue from storms. They will spend the money better and know the needs better. FEMA has failed everywhere. We don’t need them here in Texas! If you don’t have the proper insurance, then find a state with no bad weather or has that as a big priority. Home ownership is not a right – it is a privilege you earn from your hard work. I’ve personally been through 7 hurricanes and have learned that if you can’t afford to pay the taxes and insurances on your home – then you can’t afford to own a home. The government was never intended to pay your hotel bill for 2 years, like it did for Kartrina evacuees – or waste billions on trailers never used. It has always been up to family, friends, neighbors, and charity to help the truly needy – not for the government to create a class of totally dependence people.

No Department of Education. They have been a miserable failure. States will do a better job.

No Wage and Labor board. States deal with discrimination and set their own minimum wage. These are political hacks currently at the Federal Level.

No foreign aid. We need to take care of own people before worrying about others on a Federal level. This is best done as charity. Let’s stop funding those who hate us to buy bombs to kill us. Every time there has been a catastrophe, American (and apparently only Americans) citizens have responded with charity and volunteers.

There are currently only five countries worthy of a mutual defense agreement with us. Canada, England, Australia, Poland, and Israel. The rest can go pound salt. We should only sell weapons to those countries. Other country’s would have to prove a very high standard of worthiness with a 2/3 super majority vote of Congress.

Speaking of Congress, ours in Texas meets every two years for only a few months. They don’t have time to make work by creating stupid laws. A point that the Federal Government needs to take note of. I should also point out that Texas has low unemployment and no state income tax.

No Federal Grants to anyone for anything. Colleges, business, Pells, … None. That is not the business of the Federal Government – until they decided to make it their business. The tax money isn’t theirs to give out or spread around. It is the money of the people. It needs to be limited in size seized from them, and spent wisely when seized from them. The Great American industries were built without the government – and did better until they got involved. The Railroads, steel mills, automobile assembly plants, electricity, and the personal computer were created without the Federal Government getting involved. They’ve been dying because of government involvement.

The Federal Government needs to be relieved of 95% of the freedoms they have taken from the States and Citizens, and its budget should be less than 5% of what it currently is. The people the government has encouraged to be so dependent on the government need to quickly be weaned off the government’s tit. States need to set a two year goal for these people to take personal responsibility – and those who can’t ever do it need to have their children placed in Orphanages that will properly educate the kids to be productive adults – but again, I’ll explain my opinion on how the States can make American citizens productive and responsible people, and the United States again a great nation.

Every state needs to be responsible for their own economy. They break it – they fix it.

Finally, the Federal government was created as a contractor of the States. They were contracted for the states protection. States have since had all of their rights taken from them by an out of control Federal Government. Any state that shares one border with another Country or Ocean, should have the Right to peacefully secede and become its own Republic or Country at any time they do not like their governance of the Federal Government. California, New York, Illinois, and Massachusetts can become the “People’s Republics” they apparently want to be, New Mexico can become the Indian Nation they want to be, Hawaii and Puerto Rico can become Banana Republics if that’s’ their desire – and Texans can have the Texas they want – not what Boston, Chicago, and San Francisco wants.

If any of this makes sense to you – Read Atlas Shrugged by Ayn Rand. You’ll love it.